Investors' Soapbox PM

Don't Get Too Pumped for E&P

Banc of America Securities says there are no catalysts to cause oil and gas exploration-and-production shares, on average, to outperform the broader market.

Updated June 5, 2007 11:59 p.m. ET

Banc of America Securities

WHILE OUR MARKET WEIGHT STANCE on the sector has been off the mark so far this year, we do believe that aggressively adding to oil and gas exploration-and-production holdings at this juncture is largely a bet on the U.S. gasoline supply/demand balance not easing through the summer and, in particular, on weather forecasts actually proving to be true in tightening the current natural-gas supply/demand balance...